Sumo Logic Focusing on the Digital Gaming Industry

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According to a recent report, the global big data analytics market is expected to grow at 13% CAGR to reach $549.73 billion by 2028 from $231.43 billion in 2021. Redwood City-based Sumo Logic (NASDAQ: SUMO) is meeting this growing demand by improving its product offerings and expanding its use cases in the gaming industry.

Sumo Logic’s Financials

Recently, Sumo Logic announced its fourth-quarter results. Revenues grew 24% to $67.05 million and loss was $0.13 per share. The market was looking for revenues of $64.32 million and a loss of $0.17 per share for the quarter.

For the fiscal year, revenues grew 19% to $242.1 million, and net loss was $0.46 per share.

During the year, Sumo Logic saw substantial growth in usage of its offerings. Its scalable, multi-tenant platform gathered an average of 790 terabytes of data per day, scanned an average of 1.5 exabytes of data per day, and scanned approximately 3 quadrillion events on average per day during January 2022, doubling over the previous year.

For the first quarter, Sumo Logic expects revenue between $65.5-$66.5 million and a loss per share of $0.17. Sumo Logic expects revenues between $288-$292 million and a loss per share between $0.68-$0.66 for the year. The market was looking for revenues of $66.64 million and a loss of $0.12 per share for the quarter and revenues of $285.99 million and a loss of $0.49 per share for the year.

Sumo Logic’s Offerings

Recently, Sumo Logic announced the launch of its support for the AWS for Games initiative. The support will allow game developers to ensure great player experiences, safeguard sensitive data, and accelerate game releases. Sumo Logic will monitor the reliability of code repositories, automation framework, and other parts of the pipeline to help engineering focus on innovation instead of managing infrastructure. Its platform uses machine learning to detect anomalies and reveal unknown issues, enabling faster problem identification and resolution of gaming platforms, in addition to eliminating the need to over-provision hardware or software, ensuring games’ reliability when they are adopted at a greater scale. Its integrated threat intelligence accelerates threat detection and provides the context necessary to help security analysts prioritize threat data.

As per a recent study, the digital gaming industry is estimated to grow 12% annually through 2028 to become a $435 billion industry by 2028. SumoLogic is hoping to address this high growth by offering a solution that will help the gaming companies build faster, run smarter, and deliver securely.

Additionally, the company continued to add new features to its product. It created a Log4j Response Center along with webinars and blogs that provide customers with insights on how to best discover potential threats and mitigate risks. It also added new features to Sumo Logic Cloud SOAR with War Room and App Central, to help expedite manual processes and provide customers with critical resources to drive automation, thus delivering a faster response to incidents.

Sumo Logic’s stock is trading at $9.50 with a market cap of $1.08 billion. It touched a 52-week high of $23.48 in July last year and a 52-week low of $8.86 in March.

Disclosure:?All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.

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